Delayed filing.... I hope I did the right thing!

[momof5]

The paralegal called yesterday and AGAIN I asked about the stimulus rebate. She said the attorney had left a note that if we wanted to keep it we would need to delay filing. Sooooo ... I tossed the idea around for a few minutes and figured what the heck.
She was going to file everything today! Am I crazy? Its only going to delay it by a couple of weeks. We will have to go in again and resign everything BUT with all this new news on the stimulus showing up this week it would have really been depressing to lose out on the $1800 we are expecting by just a couple of days.

If I didnt so desperately need this money to really help us get a fresh start I wouldnt have done this. I know it was the right thing to do but should I have really? What worse can happen in 2 weeks???

My husband started his new job this past Monday(2 week delay in a paycheck though) so the stimulus money will pay Mays' mortgage,the home equity loan as well and car payment and hopefully a few dollars to help us catch up a little on the gas/electric bill.

So what do you think... did I make the right decision? Anyone else scheduled to be filed this week who held off?
I just feel a bit 'guilty' maybe for doing this but at the same time the trustee doesnt need the $1800 like we do.
What do you think?

[XploringOptions]

If it feels right, then it was the right decision. You seem sorted enough to know what you are doing, and if you wanted/needed to wait to convert stimulus to exempt assets, etc., well...you made the right decision. That is my opinion, anyway

[keepmine]

Of course it's the right thing to do. No need to leave $1800 on the table. You're correct-you need it far more than the trustee.

[epiphany]

I would definitely have done the same thing.

ep

[deadbrokeinnc]

I am asked my attorney if I can use the check to pay her fees although it is after I file. She told me this would not be a problem. So my mother provided me with a "gift" ( so it does not need to be listed as a debt) of $1699 with the understanding that this would be returned with my stimulus check.

I have provided all my documentation and will be filing one day next week when all the paperwork is ready for us to sign. Our check is not supposed to come until the week of May 16th.

What have others heard from their attorney? I will delay one week if this means keeping my check. I was under the impression with Chapter 7 that they look at the previous six months not money received AFTER filing.

[pa308]

So my mother provided me with a "gift" ( so it does not need to be listed as a debt) of $1699 with the understanding that this would be returned with my stimulus check.

I would be very careful with this. While you may not think of it as a loan, it has the smell of one, if not possibly a preferential payment. If the "gift" is put into your checking account, and then a check is written to your mom for the same amount you may be inviting trouble from the trustee. It sounds like these will be in your books around your filing but I could be wrong.

This is just my opinion from what I have been reading here, hopefully one of the mods can advise.

[epiphany]

I am asked my attorney if I can use the check to pay her fees although it is after I file. She told me this would not be a problem. So my mother provided me with a "gift" ( so it does not need to be listed as a debt) of $1699 with the understanding that this would be returned with my stimulus check.

I have provided all my documentation and will be filing one day next week when all the paperwork is ready for us to sign. Our check is not supposed to come until the week of May 16th.

What have others heard from their attorney? I will delay one week if this means keeping my check. I was under the impression with Chapter 7 that they look at the previous six months not money received AFTER filing.

Depends, are you able to exempt the money? I definitely wouldn't file yet if it's not exempted. And I'd be cautious too about paying your mom back with it. If you can't exempt it and do wait to file, you'll need to spend it before you file but a check to your mother might very well look like a preferential payment and the trustee could go after your mom for the entire amount.

If it is exempted, can your mom wait until after your discharge to receive the money? This would be the best scenario.

If it is not exempted, can you pay her back in groceries and other inconspicuous household items?

Talk to your lawyer about this. Good luck!

ep

[justplaintired]

I am asked my attorney if I can use the check to pay her fees although it is after I file. She told me this would not be a problem. So my mother provided me with a "gift" ( so it does not need to be listed as a debt) of $1699 with the understanding that this would be returned with my stimulus check.

I have provided all my documentation and will be filing one day next week when all the paperwork is ready for us to sign. Our check is not supposed to come until the week of May 16th.

What have others heard from their attorney? I will delay one week if this means keeping my check. I was under the impression with Chapter 7 that they look at the previous six months not money received AFTER filing.

We are not filing until the stimulus check has been spent wisely and keeping all receipts on how we spend it. We would have filed last Friday, now it will be more like end of the month, possibly June. Our attorney's paralegal told us if we use it wisely and keep receipts we should be fine. She actually said that it becomes moot or mute??? Anyway, I hated to delay it, but we desperately need this money and it was the only way I could see keeping it. It's almost like it was meant for our paralegal to take so long filing everything out, if she had been able to get it done quickly we would have been filed and most likely lost the stimulus check. We are C7 too. We are going to get $1800, which right now will do so much for this family in the way of large grocery shopping spree, pay off huge heating bill, this list goes on and on.

I would agree with the poster who said repay your mother in groceries or other necessities. Paying her back in cash shows preferential payment and that could be a problem for you.

Good luck!

[keepmine]

I am asked my attorney if I can use the check to pay her fees although it is after I file. She told me this would not be a problem. So my mother provided me with a "gift" ( so it does not need to be listed as a debt) of $1699 with the understanding that this would be returned with my stimulus check.

I have provided all my documentation and will be filing one day next week when all the paperwork is ready for us to sign. Our check is not supposed to come until the week of May 16th.

What have others heard from their attorney? I will delay one week if this means keeping my check. I was under the impression with Chapter 7 that they look at the previous six months not money received AFTER filing.

Don't do this. Any repayment will be considered a preference payment. Does not matter if you call it a gift or a loan. Don't do it. The trustee has the right to sue your mother for the return if the funds.

[danaf]

momof5 - hec no you aren't wrong. Better the money in your pocket or spent on your needs than the trustees or creditors! No need at all to feel guilty. I'm doing the same thing.

[FreshLikeADaisy]

Mom, just in case this isn't clear yet... YOU DONE GOOD!!!!

Get it, spend it, it's gone. THEN file. You're absolutely right. Good luck!!!

[ssdsco]

The paralegal called yesterday and AGAIN I asked about the stimulus rebate. She said the attorney had left a note that if we wanted to keep it we would need to delay filing. Sooooo ... I tossed the idea around for a few minutes and figured what the heck.
She was going to file everything today! Am I crazy? Its only going to delay it by a couple of weeks. We will have to go in again and resign everything BUT with all this new news on the stimulus showing up this week it would have really been depressing to lose out on the $1800 we are expecting by just a couple of days.

If I didnt so desperately need this money to really help us get a fresh start I wouldnt have done this. I know it was the right thing to do but should I have really? What worse can happen in 2 weeks???

My husband started his new job this past Monday(2 week delay in a paycheck though) so the stimulus money will pay Mays' mortgage,the home equity loan as well and car payment and hopefully a few dollars to help us catch up a little on the gas/electric bill.

So what do you think... did I make the right decision? Anyone else scheduled to be filed this week who held off?
I just feel a bit 'guilty' maybe for doing this but at the same time the trustee doesnt need the $1800 like we do.
What do you think?

As much as people tend to file immediately it's great see someone doing some BK planning and leaving as little money as possible to the trustee and creditors. It's very important to review every asset, income, any large charges in the past year, any financial transaction with a family member in the past couple years and take the time to understand the impact of BK and plan accordingly.

Seems to me people are to worried about judgments, rush into BK and cause themselves some major issues that could have been avoided.

[ssdsco]

I am asked my attorney if I can use the check to pay her fees although it is after I file. She told me this would not be a problem. So my mother provided me with a "gift" ( so it does not need to be listed as a debt) of $1699 with the understanding that this would be returned with my stimulus check.

I have provided all my documentation and will be filing one day next week when all the paperwork is ready for us to sign. Our check is not supposed to come until the week of May 16th.

What have others heard from their attorney? I will delay one week if this means keeping my check. I was under the impression with Chapter 7 that they look at the previous six months not money received AFTER filing.

Strongly agree with Keepmine. This isn't a gift. It's a loan you're going to repay with money from what will then be your BK estate that the trustee owns.

Delay filing !!

[justplaintired]

I am asked my attorney if I can use the check to pay her fees although it is after I file. She told me this would not be a problem. So my mother provided me with a "gift" ( so it does not need to be listed as a debt) of $1699 with the understanding that this would be returned with my stimulus check.

I have provided all my documentation and will be filing one day next week when all the paperwork is ready for us to sign. Our check is not supposed to come until the week of May 16th.

What have others heard from their attorney? I will delay one week if this means keeping my check. I was under the impression with Chapter 7 that they look at the previous six months not money received AFTER filing.

Delay filing until the check is spent. I have been to numberous sites that recommend this (BK sites) and this forum also advises the same thing. Do not pay your Mom (preferential payment) could cause you a problem. Not sure why your pushing filing so quickly, but if you can afford the time, which hopefully you can, do not file until you have spent the check. Otherwise take a chance of losing it.

[No Gravy]

If I didnt so desperately need this money to really help us get a fresh start I wouldnt have done this. I know it was the right thing to do but should I have really? What worse can happen in 2 weeks???

My husband started his new job this past Monday(2 week delay in a paycheck though) so the stimulus money will pay Mays' mortgage,the home equity loan as well and car payment and hopefully a few dollars to help us catch up a little on the gas/electric bill.

So what do you think... did I make the right decision? Anyone else scheduled to be filed this week who held off?
I just feel a bit 'guilty' maybe for doing this but at the same time the trustee doesnt need the $1800 like we do.
What do you think?

I think you did the right thing for you and your family, given the circumstances.

I did something similar in early July. The day I got home from a meeting with the first BK attorney I interviewed, there was a $700 cash advance check from a company that NEVER sends them. I called the attorney's paralegal to ask about the ramifications, and it took him 2 days to get back to me with an extremely vague answer.

I went ahead and deposited the check, with the knowledge and acceptance that I would likely be required to pay it back. I was OK with that, in fact it was an account I had hoped to reaffirm with (have since changed my mind and just decided to wait to file).

My situation was this, on the day I deposited the check: I had $25 to my name, my electric bill was due that day and they were going to shut it off if I didn't pay, I'm self-employed and have been waiting on a large payment from a client...but "the check's in the mail" doesn't put groceries on the table, nor pay the electric. The check showed up a few days later.

Though the cash advance check was less than the $750 limit, and I can prove it was used for absolute basic necessities (I've saved all receipts since May), and I won't be filing until the 70 days is past, and I've been making the minimum payment due on that account...I'm still aware that I may be required to pay that money back. I'm OK with that. I'd rather pay it back than have my whole case tainted.

I guess what I'm trying to say is, we do what we need to do. You needed to take care of your family. My own personal opinion is that stimulus checks should be exempt, but sometimes the courts see it that way, soemtimes they don't. Seems to be luck of the draw.

Good luck to you! (P.S. I just caught the date on your original post. Sorry, I didn't realize this was an old thread).